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BUSINESS PLAN

1. Executive Summary


Along with all the joys of snow, comes the dread of snow shoveling. Missing out on all the snow angels, snowmans and snowball fights just to shovel that snow out of your driveway? Are you wasting all your energy because you have to put chains on your tires when you drive down the road and its icy? Its time to put an end to all that.
With our new product,

"The Fire Tire"

you will be spending those snowy days having a blast, rather than shoveling and worrying about icy roads.

R & S Corporation
inventend an easy to use, affordable product to make life easier and not sweat-breaking.

Our Mission: To provide comfort for our costumers so they wont have to waste their time and energy on shoveling snow, or stress out about icy roads.

Our Motto: " A melter in mission, be gone with the snow!"

What influenced us to start this business,is the fact that we understand that driving while it snows it can be a hard and a dangerous task. We came up wih a product that drivers everywhere could undergo.
R & S Corporation is a partnership. A partnership is a business owned by two or more people. Having a partner to split the losses and profits 50/50, is in both of our advantages. The saying "two heads are better that one" helped us invent this product.
Our knowledge about tires, and our strong background in chemistry engineering helped us a great deal in creating a prototype of our product, an exact model, made by the manufacturing process that would be used in the actual production of our invention. The manufacturer of our prototype is Michellin. This was an expensive step. Prototypes cost many times the final production cost per item

Our personal savings of $20,000.00 ($10,000.00 per partner ) was not enough to cover our expenses.We discussed our plans with the loan officer at our bank and they agrees to lend us $80,000.00. the bankers felt confident that our's idea would be a success and we would be able to repay the loan out of our earnings. They are willing to lend us more money because the loan is guaranteed not only by one person but by both partners.After the prototype is completed, we must patent the product in order to protect our rights as inventors-the exclusive privilege of making, using, selling and authorizing others to make, use and sell the inventions. We need 2 years to obtain patent for our invention, otherwise our product is considered public domain, and we do not gain any money. The bank accepted for us to pay in comission an amount of $12,000.00 after the first six months once we started the actual production.
After a serious amount of research, we came to the conclusion that this product is not out on the market, and we are the first to invent this.
The demands of our product are based upon two factors. The season, in this case winter, and the geographical regions where the snow is present more than six months a year. We will offer for selling each individual tire at a price of $100. The loan money will go to the prototype, the patent of the product, manufacturing of the tires, and the advertising to publicize our new product.
$50,000,00 Advance to Michellin (to get started with our product)
$2,000.00 Magazine advertisment(popular mechanics and automobile)
$10,000.00 T.V Commercial (channel 5 and 11)
The rest of the money will be used for necesitties we'll still need, and whatever amount left over, we will put in a bank account, planning to save it up. Once we make enough profit we will open up our own factory. For now, we are going to use Michellin to make our product. Michellin will be paid with $50.00 per each tire.

1.1 Keys to success

Location: BJ's , Costco and other Specialized Stores will be the place where we sell our product.

Cost per tire at store: $ 200.00 during the winter and $150.00 in the summer.

Delivery: There is no charge for delivery

Reputation:Safe, Tested and Fire proof product.

2. Financial Plan

Our goal is to start the right way, getting people to learn about our product. We belive starting with Michellin is a great start, many people already buy their tires from there. It won't be hard to put our product on the market,and once people know about it we are confident it will have success.Once our product really begins to sell, we will save up the money to buy and start our own factory. Our product is guaranteed not to be dangerous and was tested numerous times, because our customers safety is important to us.

3.Personnel Plan

For now, we will use Michellin specialists and workers, considering they will create the product for us.

4.Competitive Comparison

We believe that considering our new product we don't have much competition. However, other companies such as Firestone will be our competitors, but the product we made is a new, never seen before product that stands out from the rest of the tires.

"The Fire Tire."